Nazara Tech shares: Choice Broking initiates coverage; check rating, price target & more
Nazara faces risks, particularly regulatory challenges in real-money gaming, and a relatively small presence outside its flagship brand, Nodwin.
- Sep 2, 2025,
- Updated Sep 2, 2025 11:23 AM IST
Choice Institutional Equities has initiated coverage on Nazara Technologies. This outlook is based on expectations of revenue and EBITDA growth at a compound annual growth rate (CAGR) of 30.7% and 44.5%, respectively, from FY25 to FY28. This growth is anticipated to be supported by Nazara's focus on gaming-first strategies and expansion through recent acquisitions.
Nazara Technologies is a leading gaming and sports media company based in India with a strong global footprint. It operates across six high-growth segments such as gamified early learning, esports, PC/console, freemium, offline gaming and AdTech.
Nazara Technologies is capitalizing on gaming regulation advancements expected in the new gaming bill, which aims to bolster investor confidence and allow the introduction of global titles in India. The company's publishing arm is strategically positioned to leverage this opportunity by collaborating with external studios and deploying mobile and multi-platform games in both Indian and global markets, said Choice.
Despite these prospects, Nazara faces risks, particularly regulatory challenges in real-money gaming (RMG), and a relatively small presence outside its flagship brand, Nodwin. Additionally, underperforming intellectual properties (IPs) could impact engagement and profitability, posing challenges to the company's growth trajectory.
The firm stands to benefit from expanding gaming markets globally and within India. Although India boasts the second-largest base of gamers, the market remains under-monetized with less than 3% of users converting to in-app purchases (IAPs). However, structural drivers like digital payments, the adoption of 5G technology, and increased engagement from Gen Z are expected to enhance monetization efforts, the brokerage noted.
Shares of Nazara Technologies remained range-bound on Tuesday as the stock hovered between Rs 1,160-1,175 mark for the day, against its previous close at Rs 1,163.40. The total market capitalization of the company stood close to Rs 11,000 crore. It has fallen 20 per cent from its 52-week high at Rs 1,450, hit a month ago.
Nazara’s global strategy includes acquisitions, such as Fusebox and ZeptoLab, which increase its exposure to high average revenue per user (ARPU) markets. By leveraging cost-effective Indian development practices and hybrid monetization models, Nazara is poised for expansion across various gaming genres, including casual, narrative, and premium games. The expectation is for IAP contributions to rise from 19% to approximately 35% by FY28.
Nazara's diversified ecosystem spans six rapidly growing verticals, including gamified early learning, PC/console gaming, esports, freemium games, offline gaming, and adtech. As India's sole listed pure-play gaming platform, Nazara is uniquely placed to tap into the burgeoning global gaming market projected to reach $201 billion by 2027, with India's market expected to double to $6 billion by 2028. Choice has a 'buy' rating on Nazara with a target price of Rs 1,400 apeice, suggesting a 21 per cent upside in the stock.
The company's strategic "Friends of Nazara" M&A model has enabled it to build a robust portfolio. This approach focuses on acquiring capital-efficient, high-return on investment (ROI) assets, which are then scaled through centralized user acquisition and monetization efforts. Successful integrations, such as Kiddopia and Nodwin, underscore Nazara’s execution capabilities. The company maintains strong capital discipline, supported by a healthy cash balance and diverse international revenue streams.
Choice Institutional Equities has initiated coverage on Nazara Technologies. This outlook is based on expectations of revenue and EBITDA growth at a compound annual growth rate (CAGR) of 30.7% and 44.5%, respectively, from FY25 to FY28. This growth is anticipated to be supported by Nazara's focus on gaming-first strategies and expansion through recent acquisitions.
Nazara Technologies is a leading gaming and sports media company based in India with a strong global footprint. It operates across six high-growth segments such as gamified early learning, esports, PC/console, freemium, offline gaming and AdTech.
Nazara Technologies is capitalizing on gaming regulation advancements expected in the new gaming bill, which aims to bolster investor confidence and allow the introduction of global titles in India. The company's publishing arm is strategically positioned to leverage this opportunity by collaborating with external studios and deploying mobile and multi-platform games in both Indian and global markets, said Choice.
Despite these prospects, Nazara faces risks, particularly regulatory challenges in real-money gaming (RMG), and a relatively small presence outside its flagship brand, Nodwin. Additionally, underperforming intellectual properties (IPs) could impact engagement and profitability, posing challenges to the company's growth trajectory.
The firm stands to benefit from expanding gaming markets globally and within India. Although India boasts the second-largest base of gamers, the market remains under-monetized with less than 3% of users converting to in-app purchases (IAPs). However, structural drivers like digital payments, the adoption of 5G technology, and increased engagement from Gen Z are expected to enhance monetization efforts, the brokerage noted.
Shares of Nazara Technologies remained range-bound on Tuesday as the stock hovered between Rs 1,160-1,175 mark for the day, against its previous close at Rs 1,163.40. The total market capitalization of the company stood close to Rs 11,000 crore. It has fallen 20 per cent from its 52-week high at Rs 1,450, hit a month ago.
Nazara’s global strategy includes acquisitions, such as Fusebox and ZeptoLab, which increase its exposure to high average revenue per user (ARPU) markets. By leveraging cost-effective Indian development practices and hybrid monetization models, Nazara is poised for expansion across various gaming genres, including casual, narrative, and premium games. The expectation is for IAP contributions to rise from 19% to approximately 35% by FY28.
Nazara's diversified ecosystem spans six rapidly growing verticals, including gamified early learning, PC/console gaming, esports, freemium games, offline gaming, and adtech. As India's sole listed pure-play gaming platform, Nazara is uniquely placed to tap into the burgeoning global gaming market projected to reach $201 billion by 2027, with India's market expected to double to $6 billion by 2028. Choice has a 'buy' rating on Nazara with a target price of Rs 1,400 apeice, suggesting a 21 per cent upside in the stock.
The company's strategic "Friends of Nazara" M&A model has enabled it to build a robust portfolio. This approach focuses on acquiring capital-efficient, high-return on investment (ROI) assets, which are then scaled through centralized user acquisition and monetization efforts. Successful integrations, such as Kiddopia and Nodwin, underscore Nazara’s execution capabilities. The company maintains strong capital discipline, supported by a healthy cash balance and diverse international revenue streams.